Department of Masters in Business Administration in

Rift Valley University

Department of Business Administration

Course Title: -
Individual Assignment on Performance Evaluation of
Human Resource in the Addis Ababa Large Tax
organization (AALTO)

Section ‘A’
PREPARED BY:
Aynalem Shibeshi
ID- 0005/2020

SUBMITTED TO:

April 2021

ADDIS ABABA, ETHIOPIA

 Table of content

Contents Page

1.Introduction................................................................. 1
2. Objective of the paper ................................................. 2

3. Description of the organization projects ...................... 3

4. Methodology ................................................................ 4

5. Empirical discussions ................................................. 5

6. Conclusion ................................................................... 6

7. Reference ..................................................................... 7

Introduction
The human resources are the most important resources of an organization.
Without effective human resources, it is simply impossible for an organization to
achieve its objectives. Human resource management (HRM) is the utilization of
human resources to achieve organizational objectives. Basically, managers get
things done through the effort of others; this requires effective human resource
management (Mondy et al, 1999, p.4).

Performance evaluation is the HRM activity that is used to determine the extent
to which an employee is performing the job effectively (Ivancevich 1998, p. 321).

Employees want to know how they are performing on the job, and it is the
responsibility of the manager to tell them. This process of evaluation and
communication should be regular and ongoing; managers should not wait until
the annual evaluation to do it.

Every organization, whether it is governmental or private, uses an evaluation

system to know how it is performing towards the achievement of both
organizational as well as individual (employee) objectives. The emphasis of the
study will be to assess the theoretical aspects of Performance evaluation being
practiced in the Addis Ababa large Tax Payers Branch Office (AALTO).

I the Addis Ababa large Tax Payers Branch Office this process are takes place by
developing system which helps to evaluate the employee performance that is
balanced score card (BSC). The major supporting department Performance
Improvement and Human Resource Directorate; has the duties and
responsibilities of evaluating employee performance. ETIDI semiannual bulletin
(vol. 2 no.3:2)

Objective of the paper

The objective of the paper was to assess the performance evaluation systems and
practices of Human Resource in Addis Ababa Large Tax Office (AALTO) and to
identify the evaluation techniques and criteria used and to what extent they are
appropriate to measure the performance of employees.

Description of the organization projects

The Addis Ababa large Tax Payers Branch Office (AALTO) was established to
monitor and collect Taxes from all large Tax Payers in the City in 2011 E.C by
the name- “Addis Ababa large Tax Payers Branch Office (AALTO)” by the
proclamation number of 983/2008 and Its powers and duties are proclaimed
under 471/88 proclamation number (Federal Negarit Gazette Proclamation No.
286/2002). The organization shoulders the responsibilities of collecting revenue
from customs duties and domestic taxes.

methodology

The organization had a total of 270 permanent employees working at the Branch
office and uses one of the modern evaluation method Balanced scorecard (BSC)
was created in 1992 by two researchers of Harvard University, namely R. S.
Kaplan and D. P. Norton. It is a multi-dimensional system, the purpose of which
is to describe, implement and manage the strategy of the company in all its
levels (Christauskas et al., 2009). According to Adomavičiūtė (2011), it is a
performance evaluation model which allows, by using the causal relationship
concept, connecting performance indicators with receivable benefits and ensures
transformation of the strategy to specific goals and actions. The core of the BSC
method is grouping of the key performance indicators that are related to
company’s strategy into four perspectives which provide answers to the following
significant questions (Kaplan et al., 1996):

 Finances: how the company should look like to its shareholders that the
financial success would accompany it.
  Clients: how the company has to look like to its clients that its vision
would be implemented.
 Internal processes: which business processes the company should
improve that it would satisfy its shareholders and clients.
 Learning and growth: how the company will keep the ability to change
and improve itself that its vision would be implemented.

So, BSC allows presenting financial and non-financial performance indicators

together: first ones as grouped into a single financial perspective and latter ones
as grouped into a client perspective, internal processes perspective, and learning
and growth perspective (Cardinaels et al., 2010). In the opinion of the authors of
this method, nonfinancial indicators by a huge extent determine financial
performance results

Empirical Discussions

There are different literature findings regarding performance evaluation practice

in Addis Ababa Large Tax office (AALTO) .

 Employees were informed concerning their appraisal result without delay.

 In the process of evaluation, most appraisers said that they make
evaluations based on their observations as well as the record they have
written about employee’s performance and they focus on employee trait
and his work achievement in the evaluation.
 Employees were evaluated by their immediate and next immediate
supervisor two times a year.
 -Employees have little understanding about the evaluation system because
of lack of effective pre and past appraisal communication in the
organizations and because of their participation in the process of
evaluation is low.

Conclusions
The current attitude of government and professionals on balanced scorecard
based management is encouraging to take the advantages of the system.
Registering the plans, activities and accomplishments of the overall
performances of the individuals, measures, and the institute itself is a long term
process, which requires awareness of individuals, cooperation of departments
within the organization, dedication of the government, professional contribution
of expertise.

In this paper we have analysed the standard, opportunities, experiences, and

requirements on balanced scorecard based management systems of AALTO.The
performance evaluation system objective of AALTO is known by all staff members
working at AALTO. Therefore, one can conclude that AALTO is doing a favorable
work on informing employees about performance evaluation system objectives.

The majority of employees at AALTO do not experience training, promotion or

demotion due to their performance evaluation result. This indicates that
performance evaluation results are not used for training, promotion or demotion
purposes The performance evaluation system of AALTO is participatory and
transparent which enables employees to play a role in the system. Supervisors at
AALTO always allow their employees to see their evaluation result. The criteria
involved in the performance evaluation system of Addis Ababa Large Tax office
(AALTO) are job related and clear. Performance evaluation is conducted twice a
year.

Reference
 Frigo ML, Krumwiede KR (1999) Balanced scorecards: a rising trend in
strategic performance measurement.Journal Strategic Performance
Measurement 3:42-48.
 BantieWerkie (2000), Introduction to management, Addis Ababa
Commercial College and institute of development, Addis Ababa, Ethiopia.
 Dessler Gray (2003), Human Resource management 9th edition, India.
 Edwin B.Flippo (1984) personnel management 6th edition, fong and son’s
printer pteSingapore
 Workie, 2000). human resource and personnel management, Addis Ababa
university, Ethiopia
 K.aswathappa (1997) human resource and personnel management,3th
edition .tatamc Graw-hill publishing co. ltd. India
 Ahmed, (2010). human resource and personnel management,London,3rd ed.
 (Www.performanceapparisal.com) access date December 8, 2018 @ 12:10
 (Www.apps.gov/humancapital/stadard) access date December 8, 2018 @
12:10